PAYE and NICs: TIINs and Basic PAYE Tools

HMRC has published a number of Tax Information and Impact Notes relating to changes to the PAYE system and NICs legislation:

• PAYE code applied to share-based payments in certain circumstances
• Closure of the Simplified PAYE Deduction Scheme to new employers at 6 April 2012 and completely on 5 April 2013
• Real Time Information (RTI): Improving the operation of Pay As You Earn
• Changes to National Insurance contributions (NICs) arising from the 1 per cent increase in NICs from 6 April 2011 and the abolition of contracting-out on a defined contribution basis
• Minor changes to National Insurance Contributions (NICs) legislation regarding the information recorded on a deductions working sheet; clarification of the ‘general earnings’ definition; and the signatory to Class 1A returns

The latest version of HMRC's Basic PAYE Tools to help employers run their payroll systems has also been published. ‘Any employer can use these tools, but they are most useful for employers with up to and including nine employees,’ HMRC guidance says. ‘As an alternative, you may wish to consider using commercial payroll software, some of which is free.’